The UK’s Plug-in Van Grant (PiVG) will be extended for a further year, the Chancellor has announced, providing much-needed incentives for van operators to go electric.

The Plug-in Van Grant will provide £120m in 2025/26 to support the purchase of new electric vans

The Autumn Budget document said the Treasury would provide £120m in 2025/26 to support the purchase of new electric vans via the PiVG and to support the manufacture of wheelchair-accessible EVs.

Launched in 2012, the PiVG currently offers up to £2,500 for small vans and £5k for large vans, available on eligible vehicles and with the discount included by the seller in the purchase price.

The programme was due to end on 31 March 2025 and the fleet sector had been campaigning for an extension, spearheaded by the Zero Emission Van Plan coalition.

A spokesperson for the Zero Emission Van Plan, said: “The extension of the Plug-in Van Grant provides welcome relief to a sector facing an uphill battle to meet ambitious decarbonisation targets. Many van operators are seeking to kickstart their transition to zero-emission vehicles, with cost just one of the key barriers blocking their path.”

But the coalition, which is led by the BVRLA and includes Logistics UK, Recharge UK, the Association of Fleet Professionals (AFP) and The EV Café, said the grant extension would not supercharge the electric van transition by itself and its campaign also calls for action on electric van affordability, vehicle charging and regulations.

The Zero Emission Van Plan’s key asks were discussed yesterday by MPs after the campaign secured a debate in Parliament.

Addressing the topic of van decarbonisation, last night’s debate explored the challenges addressed in the plan, prompting a positive response from Transport Minister Lillian Greenwood MP in which she pledged to support the transition.

The Zero Emission Van Plan spokesperson added: “Yesterday’s debate in Parliament about van electrification shows that the cross-sector Zero Emission Van Plan is gathering momentum. Its asks seeking increased fiscal support, improved charging and the removal of regulatory barriers are being heard by the people in the positions to make a difference.”